Tax-sheltered annuities are a tax-deferred retirement plan
available to employees of institutions which are tax-exempt under Section 501(c)(3) of the Internal Revenue Code and certain educational institutions.
The funds "rolled" into TIAA-CREF from other IRAs, or from any tax-deferred retirement plan
-- including distributions from non-TIAA-CREF- funded plans at educational institutions, or from noneducational employers -- retain their tax-deferred status until received as income.
In fact, if you look at the numbers--and consider how little you're going to get from Social Security (for most of us, the equivalent of roughly $13,000 a year)--you'll realize that if you're not participating in some other kind of tax-deferred retirement plan
, you can't afford not to have an IRA.
But should you put dividend-paying stocks and stock funds inside a tax-deferred retirement plan
, such as an IRA or a 401(k)?
Although a tax-deferred retirement plan
like a 401-K, 403 (b), or Individual Retirement Accounts (IRA) can be a good source of retirement income for you, it may prove expensive to pass it to your heirs through your estate plan.
It is not clear why some respondents would answer "no" to either of the two main questions on retirement coverage and subsequently answer "yes" to the question on participation in a tax-deferred retirement plan
One prominent tax-deferred retirement plan
is called a tax-deferred annuity (TDA).
The Solo(k) is a tax-deferred retirement plan
specifically designed for individual business owners or self-employed persons.
ING's effort reminds individuals to develop a comprehensive strategy, which includes leveraging the automatic savings power of a tax-deferred retirement plan
Generally, the maximum catch-up amount is two times the basic annual limit, but only to the extent a participant has not previously deferred the maximum amount under an eligible plan or similar tax-deferred retirement plan
When done in a taxable account rather than in a tax-deferred retirement plan
, this strategy provides immediate tax losses, while deferring taxable gains.
At that point, the entire monthly mortgage payment can be invested in a tax-deferred retirement plan
earning 10% a year.